KUALA LUMPUR: Bank Negara Malaysia expects the prices of goods and services to drop following the Pakatan Harapan government’s move to zero-rate the goods and services tax (GST) beginning June 1.
Bank Negara governor Muhammad Ibrahim said it was important for the relevant authorities to ensure that businesses passed the benefits to the public at large.
“More likely than not, it will have an impact on inflation but it is too early for us to calculate (the inflation rate) right now.
“The inflation rate for the first quarter is set between 2% and 3%, but with the information coming in, we will look at it again.
“If need be, we will revise the rate,” he told reporters after announcing the first quarter GDP here today.